Edison Man Charged With $1.3M COVID Relief Fraud Scheme

EDISON, NJ — An Edison man was charged this week for allegedly obtaining $1.3 million in federal Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL) illegally, Acting U.S. Attorney Rachael A. Honig announced Wednesday.

Jordan C. Larkins, 31, was charged with three counts of bank fraud, seven counts of wire fraud and two counts of money laundering, Honig said.

According to authorities, Larkins submitted three fraudulent PPP loan applications to two different lenders on behalf of three purported businesses and a total of seven EIDL applications to the Small Business Association (SBA) on behalf of four purported businesses.

The loans were designed to provide emergency financial assistance to millions of Americans suffering the economic effects caused by the COVID-19 pandemic.

The applications Larkins submitted allegedly contained fraudulent representations to the participating lenders and the SBA, including bogus federal tax return documentation, Honig said. According to Social Security Administration records, there were no wages or Forms W-2 processed for any of the entities between 2018 and 2020 and Larkins also fabricated bank statements, the identities of individuals listed on the applications, and driver’s licenses of purported applicants, Honig said.

Lenders and the SBA approved Larkins’s PPP loan applications, EIDL SBA loan applications, and EIDL advance payments, and provided his businesses with approximately $1.3 million in federal COVID-19 emergency relief funds meant for distressed small businesses, Honig said.

The three counts of bank fraud each carry a maximum penalty of 30 years in prison and a $1 million fine; the seven counts of wire fraud carry a maximum penalty of 20 years each, and the two counts of money laundering each carry a maximum penalty of 10 years in prison.

Both the wire fraud and money laundering counts carry a maximum fine of $250,000 or twice the gross gain to the defendant or gross loss to the victim, whichever is greatest.

Honig credited postal inspectors of U.S. Postal Inspection Service, Newark Division, under the direction of Acting Inspector in Charge Raimundo Marrero; special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; and special agents of the Social Security Administration Office of the Inspector General, New York Field Division, under the direction of Special Agent in Charge John Grasso, with the investigation leading to the charges.

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